Audacy is offering certain stockholders a limited window the chance to buy up to 5 million additional shares of its Class A and Class B Common Stock at $20 per share. The company plans to use the money raised to pay down even more debt, post-bankruptcy.
Audacy completed its financial restructuring in September, reducing funded debt by 80%, from $1.9 billion to $350 million, and achieving a total net leverage of 2.7x.
This “preemptive rights offering” is available to stockholders who own at least 0.5% of the company’s total shares or other qualifying securities. These eligible stockholders can purchase enough shares to keep their ownership percentage the same and avoid dilution. As part of its restructuring, Audacy became a private company.
To participate, stockholders must fill out and submit the required forms by December 27.
Audacy is locking in its future, as the broadcaster may face new regulatory challenges as incoming FCC Chairman Brendan Carr signals plans to revisit the Commission’s decision tied to ownership concerns involving George Soros-backed Laurel Tree Opportunities Corporation.
In an appearance on FOX Business, Carr criticized the FCC’s approval of a temporary waiver allowing Audacy to exit bankruptcy. He argued the 3-2 vote bypassed established procedures and alleged favoritism under current Chair Jessica Rosenworcel, citing Laurel Tree’s acquisition of over 40% of Audacy’s senior debt.
Carr, however, vowed to review the deal given Soros’ political leanings, noting, “There’s a petition for reconsideration pending at the FCC right now, and I want to take a very hard look at that.”
Anyone rich enough to have that kind of dough ain’t ignorant enough to invest it in a company on life support.
This collection of yahoos at Audacy should just go away. They are unfit to hold licenses
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